Yes, railfence would work and be simple and stunning. I love scrappy quilts and you probably have a nice selection there with lots of pretty fabrics. Whatever pattern you choose, you will have some fun making it!
You could also use the 1.5" strips in a Roman Square quilt
http://www.quilterscache.com/R/RomanSquareBlock.html
or a Chinese Coin quilt
http://www.quilterscache.com/C/ChineseCoinsBlock.html
or a log cabin quilt.
http://www.quilterscache.com/L/LogCabinBlock.html